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Question - You have been approached by a customer for assistance to purchase an investment property. They intend to access equity in their home for the deposit. As they do not wish to use LMI they will borrow 80% LVR on the investment property. You are required to determine the current balance on their home loan using thee information below?
Investment property purchase price: $830,000
Home Value: $750,000
The LVR after refinance the current loan to accommodate the deposit for the investment property is 74%
The current debt prior to borrowing the deposit is
a. $389,000
b. $555,000
c. $614,200
d. $166,000
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